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Summary of objections received from various objectors against the application of WESCO
for approval of Annual Revenue Requirement and determination of Retail Supply Tariff
for the FY 2012-13:
1) Shri Surendra Kumar Gupta, Principal, Officer, Larsen Turbo Limited, 3 BR-2, At.Po.
Kansbahal, P.S.Rajgangpur, Dist. Sundergarh.
The quality of supply provided by the WESCO is poor and the Hon’ble Commission may
pass orders to reduce tariff from 475 paise per unit to 300 paise per unit which was
prevailing up to 30.03.2010.
WESCO failed miserably to reduce distribution loss and prevent theft of electricity in the
sector.
Due to frequent failure of power supply the production of the objector is seriously
hampered and the objector is facing heavy irreparable loss due to damage to the costly
machines and equipments of the plant.
Huge increase in tariff over the last two years, without any visible change in the area of
operation, has added to the problem of industrial units which are already suffering from a
cut-throat global competition.
Huge difference in tariff for use of Power by the inhabitants inside the Colony and
outside the colony is an unjustified discrimination among the same category of domestic
consumers.
The limits for power factor incentives and power factor penalty may not be discontinued.
WESCO may be directed to allow 1% rebate if the bill is pated within 15 days of receipt
of the same or to allow 2% rebate if the bill amount is paid within 72 hours.
WESCO may kindly be directed to allow 1% rebate, if the bill amount is paid within 15
days of receipt of the same or to pay 2% rebate if the bill amount is paid within 72 hours.
The petitioner has requested the Commission to get rebate in case the load factor is
maintained at level of more than 30%.
The prayer of the WESCO to discontinue the TOD benefits should be rejected and the
same should be increased further up to 50% of the normal price.
There should not be any penalty for drawl of power in excess of the contract demand and
the off peak hours should be treated as 6 a.m. to 10 a.m. and 6 p.m. to 10 p.m.
2) Shri G.N.Agarwal, Sambapur District Consumers, Federation, Balaji Mandir Bhawan,
Khetrajpur, Sambalpur.
Even after 16 years of reformation process or of power distribution sector of Orissa the
DISCOM is not yet able to major the actual T&D loss Govt. Orissa having 49% share in
the DISCOMs is not asserting its right, discharge in duty in obligation as a stakeholder of
the Company.
The power generator from Chipilima power house is not effectively utilized for the
consumers of the State.
Apart from normal hooking by LT consumers, the pilferage of energy by HT and EHT
consumers has also been observed in WESCO area of operation.
The LT consumers should be motivated properly to pay the electricity charges in time.
Consumers’ awareness program should be initiated by the DISCOM at village level for
this purpose.
The consumer should be allowed for payment of security deposit in the form of NSC,
cash and also bank guarantee.
The amount of bad and doubtful debt should be scrutinized to segregate the fake debts
raised on having non-existence consumers.
The billing system is erroneous and the recovery process is not taken in time which
burdens the honest and diligent consumer.
Detailed account of Kutir Jyoti has not been submitted and the same may be asked.
Others consumption of 1 unit to 500 units may be fixed at one category @140 and 500 to
600 units @310 and thereafter 500.
General purpose up to 200 units @ 300 and thereafter @ 600.
Any gap should be burdened on HT and EHT consumers in the spirit of fair competition
with reference to tariff of other states.
The proposal of WESCO to levy DPS on LT consumers should not be allowed.
3) Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour, Plot No. 302
(B), Aherasahi, Nayapalli Bhubaneswar 751 012.
Rural consumers are suffering a lot due to low voltage and back out in most of the time.
Licensee is taking interest in supply of quality power to the consumers.
Consumers are not getting proper voltage, O & M of substation lines is very poor, energy
audit needs to be done, losses reduction is not as per Commission’s norms. Hon’ble
commission may take proper action for violation of commissions directives.
The licensee has to produce the list of cases and FIRs filed in the different court and
police stations since 2009-10 to 2011-12.
Licensee to induct required additional manpower for proper maintenance and loss
reduction.
The licensee should produce the details about death of animals and human beings and the
initiatives taken by the licensee to pay the compensations.
Licensee has not taken any steps towards conservation of energy and implementation of
Bachat Lamp Yojana.
The licensee should produce the status report of how much lines and sub-stations were
constructed with MP and MLA funds and with own funds during last year.
Licensee has to produce the reasons for not achieving the AT&C loss reduction targets
and status report of CAPEX scheme.
The licensee should produce the list of outstanding dues with Govt. Dept, PSU till
11.1.2012 and actions taken by the company to recover the same.
The status report of outstanding dues of HT and EHT consumers and how much
outstanding dues are settled under one time settlement scheme.
4) Shri Suryakanta Pati, Chief Managar (Elect.). I/C OCL India Limited Qrs No. 101,
Utkal Tower-1, OCL New Colony, PO/PS, Rajgangpur, Sundergarh, Odisha.
The graded slab tariff would have the effect of reducing the tariff for all HT and EHT
consumers for higher consumption/capacity utilisation & thereby reduce cross subsidy.
This tariff would make more competitive by opening the avenues for open access and
harnessing the captive power generation in the state and thereby resulting in opening up
of the doors of competition.
Increasing the TOD discount from 10 paisa to 30 paisa per kWh will encourage
consumers to shift their load in non peak night hours to reduce drawl during peak period
and thus reducing SMD of WESCO and thus increasing per MVA returns to WESCO.
Further differential tariff for peak and off peak hours is essential to promote DSM.
Further TOD discount may be extended to 10 am to 6 pm of time slot to reduce the wide
variation during peak & off peak hours.
PF incentives should be 1% for every 0.5% over the pf of 97% up to and including 100%
on the monthly demand charge & energy charge for FY 2012-13 similar to that of FY
2010-11.
For computation of LF the recorded demand or 80% of the contract demand is to be
considered whichever is higher.
The energy consumption in Industrial colony limiting to maximum of 10% shall be
included in the first slab of 50% for incentive calculation. The energy consumed in
industrial colony in excess of 10% of the total consumption shall be billed at the rate of
energy charges applicable to the appropriate class of industry.
5) Shri Akshya Kumar Sahani, B/L -108, VSS Nagar, Bhubaneswar.
WESC has not taken any efforts to reduce the distribution loss had has further requested
for revision of RST for meeting the revenue gap which may not be allowed.
WESCOs approach to increase the RST is absurd and not sustainable and hence ARR
application shoud be rejected and the licensee be directed to increase its own efficiency
level by reducing the AT&C loss and improving the quality of supply.
WESCO has proposed various unnecessary expenses which may not be allowed as it will
ultimately burden on the poor consumers.
Hon’ble Commission may re-determine the cross subsidy and EHT tariff as the tariff for
HT and EHT consumers have been increased over the time.
BPL consumers consuming more than 30 kWh needs to be brought under domestic
category. Utility should expedite the process of metering and billing such consumers and
also increase its vigilance activities to crab the theft and loss of electricity.
Hon’ble Commission may direct the licensee to abolish the redundant manpower and
engage the appropriate manpower for betterment of the company to provide the quality
and effective services.
Waver of arrears towards annual inspection fees for lines and substations may not be
considered as WESCO is duly bound to pay the annual inspection fees to the Govt. The
approved amount towards depreciation should be utilized for replacement/augmentation
and payment of inspection fees of the line and substation.
The license neglects the R&M of the distribution lines and substations where there are
frequent interruptions. However, the licensee is projecting increasing and inflated R&M
expenses which may not be allowed. Licensee should submit the R&M schedule and
expenses incurred during FY 2011-12 and proposed schedule for 2012-13. The works
should audited and the report of the same should be submitted to the Commission.
It is suggested that Hon’ble Commission may revert to the system of 2 part tariff while
approving the BSP for the licensee. Further in case of statutory power cut, the restricted
demand be treated as “Contract Demand” for computation of demand charges.
In case of statutory power cut, the restricted demand be treated as “Contract Demand” for
computation of Demand Charges.
Load factor be calculated based on the actual period of availability of unrestricted power
supply during the month and that the demand charges be calculated on prorate basis if the
total period of shutdown of the plant due to interruptions and planned shutdown exceeds
30 hours in a month.
To disallow the submission of the licensee to eliminate the graded slab system of tariff,
20% higher drawl over CD without penalty and kVAh billing.
Off-peak hours may be granted from 10 pm to 6 am.
6) Climate Group Incbue Business Center, Label-3, Room No. 301, New Delhi 110 019.
The present public lighting if replaced with LED lighting the huge energy and in turn
revenue will be saved as it is more energy efficient system.
Hence, requested to adopt LED lighting for public lighting in ARR for FY 2012-13.
To adopt policies like reduced tariff, rebate/discounts and issue directives to ULBs for
adoption of LED street lighting.
7) Shri Arun Kumar Sahu, Assistant Secretary, Orissa Consumers’ Association, Devajyoti,
Upabhokta Kalyan Bhawan, Biswanath Lane, Dist. Cuttack-2.
The application filed by the licensee is not in accordance with the law and also not
tenable under law as such the same is liable to be rejected.
Licensee has not improved on its service, efficiency and SOP and has not reduced T&D
losses as per Hon’ble Commissions directives and the consumers should not be
penalized. Licensee has not invested in up gradation and improvement of system &
quality of service and hence should not be allowed to burden the consumers for its
business profits.
The commission has to determine licensee revenue for the purpose of fixing the tariff first
but not on composite application which is confusing and contravention of law.
The procedure/method so adopted by commission to be made simple and inexpensive.
The licensee has failed to arrest the system loss, bad debts, expenses on telephone, A&G
costs etc.
The licensee has not given the details or calculation of the gap between revenue
collection and the bill so raised for last 5 years and has kept hidden/not disclosed.
The licensee has not paid interest on Security Deposit so made by the consumer and has
not worked out the same.
The licensee has not yet complied or submitted report of its compliance of OERC order
dated 30.09.2011.
8) Shri Arun Kumar Sahu, General Secretary, Federation of Consumers Organization,
(FOCO) Odisha, Biswanath Lane Dist Cuttack-2.
The application filed by the licensee is not in accordance with the law and also not
tenable under law as such the same is liable to be rejected.
Licensee has not improved on its service, efficiency and SOP and has not reduced T&D
losses as per Hon’ble Commissions directives and the consumers should not be
penalized. Licensee has not invested in up gradation and improvement of system &
quality of service and hence should not be allowed to burden the consumers for its
business profits.
The commission has to determine licensee revenue for the purpose of fixing the tariff first
but not on composite application which is confusing and contravention of law.
The procedure/method so adopted by commission to be made simple and inexpensive.
The licensee has failed to arrest the system loss, bad debts, expenses on telephone, A&G
costs etc.
The licensee has not given the details or calculation of the gap between revenue
collection and the bill so raised for last 5 years and has kept hidden/not disclosed.
The licensee has not paid interest on Security Deposit so made by the consumer and has
not worked out the same.
The licensee has not yet complied or submitted report of its compliance of OERC order
dated 30.09.2011.
9) Shri Dilip Kumar Mohapatra, Secretary, Keonjhar , avanirman Parisad, Chandin
Chowk, Cuttack.
The application filed by the licensee is not in accordance with the law and also not
tenable under law as such the same is liable to be rejected.
Licensee has not improved on its service, efficiency and SOP and has not reduced T&D
losses as per Hon’ble Commissions directives and the consumers should not be
penalized. Licensee has not invested in up gradation and improvement of system &
quality of service and hence should not be allowed to burden the consumers for its
business profits.
The commission has to determine licensee revenue for the purpose of fixing the tariff first
but not on composite application which is confusing and contravention of law.
The procedure/method so adopted by commission to be made simple and inexpensive.
The licensee has failed to arrest the system loss, bad debts, expenses on telephone, A&G
costs etc.
The licensee has not given the details or calculation of the gap between revenue
collection and the bill so raised for last 5 years and has kept hidden/not disclosed.
The licensee has not paid interest on Security Deposit so made by the consumer and has
not worked out the same.
The licensee has not yet complied or submitted report of its compliance of OERC order
dated 30.09.2011.
10) Mr. Bibhu Charan Swain, M/s. Power Tech Consultants, 1-A/6, Swati Villa, Surya
Vihar, Link road Cuttack 753 012.
Printed copy of ARR and RST application are not available at Licensees offices.
DISCOM has not taken any efforts to reduce the distribution loss. Reduction in
distribution loss will increase revenue and intern will make the licensee revenue surplus.
Further, there is need to make efforts to collect arrears and reduce deficit.
In rural areas the restoration of power supply takes unlimited period. Further, there are
problems of low voltage in the evening, and in urban areas the voltage fluctuations are
unbearable. Reconnection of service after payment of bill takes around 2 to 3 days time.
Consumers don’t know GRF and Ombudsman as institution to address their grievances
and there is no information provided by licensee to the consumers.
The minimum charges collected by the licensee are not utilized for up gradation of
substations and transformers. Licensee have not enumerated short and long term
measures for system improvement work.
The distribution licensee have not improved their efficiency and standard of service and
not reduced losses. The licensees are taking full advantage of the cost plus tariff
determination and are projecting the increasing costs without any improvements with
further deterioration of performance.
The amount not collected cannot be treated as bad and doubtful debt. Dues which are not
collectable and have been written off from the books of the licensee based on audited
results only may be allowed within limit of 1.5%.
Licensee must submit authenticated data based on energy audit and with supporting
printouts.
The license is not at all concerned about demand side management of distribution system.
Proposed to conduct energy audit and SOP audit by third party so as to assess the actual
performance of the licensee.
11) Shri Ananta Bihari Routray, Secretary, Orissa Electrical Consumers’ Association,
Sibasakti Medicine Complex, B.K.Road Cuttack 753 001.
The licensee has not improved its infrastructure and existing facilities are as like before
for reduction of AT&C loss.
The metering conditions are not satisfied and the declared figures of consumer metering
is fabricated and far from ground reality. Further during peak hours the supply voltage is
very low. In rural sectors the duration of power cut is higher and there is no prompt
restoration of power supply.
Performance of DISCOM in billing and collection is disappointing. In case of billing
related problems the consumers has to visit the office repeatedly and the action followed
are very slow.
DISCOMS are not undertaking consumer awareness activities and consumers don’t know
about GRF and OMBUDSMAN system at all. Licensees are further avoiding to give
information under RTI by giving plea.
12) Shri Anil Kumar Pandey, Director, Maruti Steel, Moulding (P) Ltd., At-Sarandamala
Padampur, Po. Kuarmunda, Dist. Sundergarh.
Hon’ble commission to re-determine the cross subsidy in line with the NTP and lower the
tariff for the EHT consumers.
No penalty for 120% of the CD during the off-peak period.
Load factor incentive should not be withdrawn.
PF penalty should be levied for pf below 0.9 and incentives for pf above 0.95.
The licensees proposal on supplying and replacing the energy meter should be rejected
along with the proposal of collecting security deposit.
Off peak may be granted from 10pm to 6 am
In case of statutory power cut the restricted demand be treated as “Contract Demand” for
computation of demand charges.
Load factor be calculated based on the actual period of availability of unrestricted power
supply during the month and that the demand charges be calculated on prorate basis if
the total period of shutdown of the plant due to interruptions and planned shout downs
exceeds 30 hours in a month.
13) Shri Surendra Jindal, Director, M/s. Jindal Resources, (P) Ltd., Plot No. 178, Kalunga
Industrial Estate, Po-Kalunga, Dist. Sundergarh.
Hon’ble commission to re-determine the cross subsidy in line with the NTP and lower the
tariff for the EHT consumers.
No penalty for 120% of the CD during the off-peak period.
Load factor incentive should not be withdrawn.
PF penalty should be levied for pf below 0.9 and incentives for pf above 0.95.
The licensees proposal on supplying and replacing the energy meter should be rejected
along with the proposal of collecting security deposit.
Off peak may be granted from 10pm to 6 am
In case of statutory power cut the restricted demand be treated as “Contract Demand” for
computation of demand charges.
Load factor be calculated based on the actual period of availability of unrestricted power
supply during the month and that the demand charges be calculated on prorate basis if
the total period of shutdown of the plant due to interruptions and planned shout downs
exceeds 30 hours in a month.
14) Shri Ashok Agarwal, Director, Shree Salasar, Castings Pvt Ltd, P/26, Civil
Township Rourkela 769 004.
Determine special tariff for induction furnace industry based on the nature of supply and
the purpose for which the supply is required.
Load factor be calculated based on the actual period of availability of unrestricted power
supply during the month and that the demand charges be calculated on prorate basis if the
total period of shutdown of the plant due to interruptions and planned shout downs
exceeds 30 hours in a month. The calculation of LF shall be based on the maximum
demand recorded during the period other than off-peak hours and taking into account the
normative power factor of 0.9.
In the case of statutory power cut the restricted demand be treated as “Contract Demand”
for computation of demand charges.
Licensees proposal to increase the re-connection charges, discontinuation of load factor
incentive be rejected.
15) Vishal Ferro Alloys Ltd., At. Balanda, Po. Kalungaon, Rourkela 770 031 Odisha.,
Objector is a HT consumer having steel factory with induction and submerge furnace
load.
Hon’ble Commission must re-determine the tariff based on the principles laid down by
the Hon’ble Tribunal in the judgment dated 30.05.2011 and 02.09.2011 for the year
2010-11 and 2011-12. Therefore, the ensuring years tariff must be determined on that
basis.
Hon’ble Commission must first undertake the truing up of the financials of WESCO for
the previous year and give credit to the consumer for the excess tariff paid by the
consumers on the basis of projections of WESCO and further, calculate the tariff for the
ensuring year based on the figures from truing up ARR.
The power factor penalty should be made applicable for monthly average power factor
below 0.9 in line with the Regulation 77 of the Supply Code.
Load factor incentives should be calculated as per the Supply Code and Tariff Orders
from the beginning till the previous year i.e. 2010-11.
On achievement of LF of minimum 70% on actual hour of supply, some discount should
be given to match up the tariff with surrounding states and in the light of tariff fixation
for the year 2005-06. Further, it is submitted that if a discount of 20% on load factor
guarantee of 70% is given it will be beneficial both to the consumers/industries as well as
to WESCO.
WESCO is seeking in increase in all expenditure year after year. However, the loss levels
are not being brought down proportionately by WESCO.
WESCO ought not to be allowed tariff for their inefficiencies and ought to suffer the
losses for their inability to reasonably reduce loss levels and such inefficiencies without
passing on such inefficiencies to the consumers of the State of Orissa.
The imposition of demand charges and monthly minimum charges amounts to multiple
charges being claimed towards meeting fixed charges. Further, submitted that if the
consumer is unable to draw electricity to the contracted load for reasons not attributable
to the consumers.
Hon’ble Commission ought not to allow increase in the employee cost of the licensee
mearly on the possibility of pay revision by the State Govt. of its employees unless the
licensee displays corresponding increase in the efficiency.
16) Bajaranga Steel & Alloys Ltd., Plot No. 31, Gobhanga, Kalungaon 770 073 Odisha.
Objector is a HT consumer having steel factory with induction and submerge furnace
load.
Hon’ble Commission must re-determine the tariff based on the principles laid down by
the Hon’ble Tribunal in the judgment dated 30.05.2011 and 02.09.2011 for the year
2010-11 and 2011-12. Therefore, the ensuring years tariff must be determined on that
basis.
Hon’ble Commission must first undertake the truing up of the financials of WESCO for
the previous year and give credit to the consumer for the excess tariff paid by the
consumers on the basis of projections of WESCO and further, calculate the tariff for the
ensuring year based on the figures from truing up ARR.
The power factor penalty should be made applicable for monthly average power factor
below 0.9 in line with the Regulation 77 of the Supply Code.
Load factor incentives should be calculated as per the Supply Code and Tariff Orders
from the beginning till the previous year i.e. 2010-11.
On achievement of LF of minimum 70% on actual hour of supply, some discount should
be given to match up the tariff with surrounding states and in the light of tariff fixation
for the year 2005-06. Further, it is submitted that if a discount of 20% on load factor
guarantee of 70% is given it will be beneficial both to the consumers/industries as well as
to WESCO.
WESCO is seeking in increase in all expenditure year after year. However, the loss levels
are not being brought down proportionately by WESCO.
WESCO ought not to be allowed tariff for their inefficiencies and ought to suffer the
losses for their inability to reasonably reduce loss levels and such inefficiencies without
passing on such inefficiencies to the consumers of the State of Orissa.
The imposition of demand charges and monthly minimum charges amounts to multiple
charges being claimed towards meeting fixed charges. Further, submitted that if the
consumer is unable to draw electricity to the contracted load for reasons not attributable
to the consumers.
Hon’ble Commission ought not to allow increase in the employee cost of the licensee
mearly on the possibility of pay revision by the State Govt. of its employees unless the
licensee displays corresponding increase in the efficiency.
17) Shree Radhakrishna Pvt Ltd., Village - Goibhanga, Kalugaon 770 031 Odisha,
Objector is a HT consumer having steel factory with induction and submerge furnace
load.
Hon’ble Commission must re-determine the tariff based on the principles laid down by
the Hon’ble Tribunal in the judgment dated 30.05.2011 and 02.09.2011 for the year
2010-11 and 2011-12. Therefore, the ensuring years tariff must be determined on that
basis.
Hon’ble Commission must first undertake the truing up of the financials of WESCO for
the previous year and give credit to the consumer for the excess tariff paid by the
consumers on the basis of projections of WESCO and further, calculate the tariff for the
ensuring year based on the figures from truing up ARR.
The power factor penalty should be made applicable for monthly average power factor
below 0.9 in line with the Regulation 77 of the Supply Code.
Load factor incentives should be calculated as per the Supply Code and Tariff Orders
from the beginning till the previous year i.e. 2010-11.
On achievement of LF of minimum 70% on actual hour of supply, some discount should
be given to match up the tariff with surrounding states and in the light of tariff fixation
for the year 2005-06. Further, it is submitted that if a discount of 20% on load factor
guarantee of 70% is given it will be beneficial both to the consumers/industries as well as
to WESCO.
WESCO is seeking in increase in all expenditure year after year. However, the loss levels
are not being brought down proportionately by WESCO.
WESCO ought not to be allowed tariff for their inefficiencies and ought to suffer the
losses for their inability to reasonably reduce loss levels and such inefficiencies without
passing on such inefficiencies to the consumers of the State of Orissa.
The imposition of demand charges and monthly minimum charges amounts to multiple
charges being claimed towards meeting fixed charges. Further, submitted that if the
consumer is unable to draw electricity to the contracted load for reasons not attributable
to the consumers.
Hon’ble Commission ought not to allow increase in the employee cost of the licensee
mearly on the possibility of pay revision by the State Govt. of its employees unless the
licensee displays corresponding increase in the efficiency.
18) Maa Girja Ispat Pvt Ltd., At-Bijabahal, Kuarmunda, Rourkela 770039 Odisha.
Objector is a HT consumer having steel factory with induction and submerge furnace
load.
Hon’ble Commission must re-determine the tariff based on the principles laid down by
the Hon’ble Tribunal in the judgment dated 30.05.2011 and 02.09.2011 for the year
2010-11 and 2011-12. Therefore, the ensuring years tariff must be determined on that
basis.
Hon’ble Commission must first undertake the truing up of the financials of WESCO for
the previous year and give credit to the consumer for the excess tariff paid by the
consumers on the basis of projections of WESCO and further, calculate the tariff for the
ensuring year based on the figures from truing up ARR.
The power factor penalty should be made applicable for monthly average power factor
below 0.9 in line with the Regulation 77 of the Supply Code.
Load factor incentives should be calculated as per the Supply Code and Tariff Orders
from the beginning till the previous year i.e. 2010-11.
On achievement of LF of minimum 70% on actual hour of supply, some discount should
be given to match up the tariff with surrounding states and in the light of tariff fixation
for the year 2005-06. Further, it is submitted that if a discount of 20% on load factor
guarantee of 70% is given it will be beneficial both to the consumers/industries as well as
to WESCO.
WESCO is seeking in increase in all expenditure year after year. However, the loss levels
are not being brought down proportionately by WESCO.
WESCO ought not to be allowed tariff for their inefficiencies and ought to suffer the
losses for their inability to reasonably reduce loss levels and such inefficiencies without
passing on such inefficiencies to the consumers of the State of Orissa.
The imposition of demand charges and monthly minimum charges amounts to multiple
charges being claimed towards meeting fixed charges. Further, submitted that if the
consumer is unable to draw electricity to the contracted load for reasons not attributable
to the consumers.
Hon’ble Commission ought not to allow increase in the employee cost of the licensee
mearly on the possibility of pay revision by the State Govt. of its employees unless the
licensee displays corresponding increase in the efficiency.
19) M/s. Scan Steels Ltd., Regd. Office, At Main Road, Rajgangpur 770 017 Dist.
Sundargarh, Odisha.
The steel industry has gone through severe tariff shocks in the past years.
The steady and steep increase in tariff is mainly because of the method of determining the
cross subsidy by the Commission which has been set aside by the ATE, New Delhi.
The Hon’ble Commission may determine a special tariff for mini steel plants based on
the nature of supply and the purpose for which the supply is required as per the
provisions of section 62 (3) of the Electricity Act, 2003.
The Hon’ble Commission may determine the tariff based on cost to serve the customer
and on the principles that the cross subsidies shall not be increased, but reduced.
The load factor should be calculated based on the actual period of availability of
unrestricted power supply during the month and the demand charges should be calculated
on prorate basis if the total period of shutdown of the plant due to interruptions and
planned shutdowns exceeds 30 hours in a month.
In case of statutory power cut, the restricted demand may be treated as “Contract
Demand” for computations of demand charges.
The licensee is making the same stereo typed submissions and is not serious enough to
reduce the distribution losses from time to time, which if carried out properly, could have
lead to an actual distribution loss of not more than 15% by now. However, the overall
distribution loss for FY 2012-13 may be fixed at 18%.
The claim of the licensee for treating the past losses, computed on the basis of audited
figures as regulatory assets is unacceptable.
The Commission may reject the submission of treating the collection inefficiency as bed
& doubtful debt.
The Hon’ble Commission may allow 1% of the accrued revenue as bed debt, instead of
allowing 2% as in RST order for FY 2009-10 and on the revenue less EHT sales for the
FY 2010-11.
WESCO’s proposal for increase in re-connection charges should not be accepted as this
does not apply to the EHT industries.
WESCO’s proposal for the withdrawal of load factor incentive is not justified on the
ground that the consumer utilizes energy at a very high voltage based on the process and
the quantum of production which is round the clock and the same should be increased for
evening out the load curve for off-peak drawal.
The PF penalty should be based on 90% PF and the DISCOMs should refund the excess
amount claimed on this ground.
Any provision for increase in the minimum power factor in the tariff order should be
avoided.
Power factor incentive should be awarded for a power factor above 95%.
The off-peak period may be between 10 p.m and 6 a.m next day.
20) Shri Prabhakar Dora, Consumer Counsel, At-Vidya Nagar, Co-operative Colony, 3rd
Line, rayagada, Po/Ps/Dist. Rayagada.
The licensee should submit the number estimates sanctioned during 2001-02 to 2011-12
and the number of final bill issued against 12(d) of condition of Supply 2001 from
1.04.2004 to 1.04.2011.
The licensee should submit that out of these sanctioned estimates how many estimates
sanctioned under remunarativeness Govt./Private separately and how much amount
adjusted against the capital works done till date and how many not sanctioned with
reason.
The PF below which penalty is livable should be 90% as provided in regulation 77 of the
distribution code and not 92% as specified in the earlier RST order. Excess penalty levied
by DISCOM should be refunded.
DISCOMs are projecting high LT sales in their ARR to project higher requirement of
cross subsidy and corresponding increase in HT and EHT tariff.
DISCOMs have totally failed to curtail LT as well as overall distribution loss. The gap
between commissions approved loss and actual loss is widening and actual distribution
loss is increasing. Collecting efficiency is also disappointing due to which the AT&C
losses are also increasing from year to year.
The tariff for GPS consumers availing HT supply with CD upto 70 kVA has not been
provided in the RST Order for 2010-11. Such consumers are being charges at tariff
applicable to LT GPS category. This is discriminatory. HT tariff for GPS category of less
than 110 kVA should be provided in the RST.
Pre-paid meters should be introduced I Govt. Consumers on first phase on trial basis.
State Govt. to extend the benefits to a particular class of consumer (BPL) by bearing the
full cross subsidies for supply of power to these subsidized group of consumers.
DISCOM has not done energy audit so far and performance of DISCOM to reduce loss is
poor. Therefore, any relook at the approved targets specified by the commission will only
encourage them to be more inefficient and hence losses as determined by the Hon’ble
Commission should continue and there should be no relook.
Acceptance of actual loss data projected by DISCOMS will make tariff rise enormously
and unaffordable.
DISCOM should supply energy meters to all consumers as per the Act and collect
security Deposit towards cost of meter as approved by the Commission. At present
DISCOMs are not supplying the meters and forcing the consumers to purchase from
market.
21) Shri Gobardhan Pujhari, Gne, Secretary, Sundargarh District Employer’s Association,
AL-1, Basantinagar, Rorkela 12.
T&D losses of the licensee are on higher side compared to the other parts of the country.
Revenue gaps should be financed from sources other than debts to minimize the interest
cost.
License should make efforts to bring working capital in terms of shareholders agreement.
Further licensee has failed to invest any amount by introduction of shares and has been
consistently demanding to borrow money by hypothecating the assets.
It is recommended for marketing of power at competitive rates to accelerate
industrialization of the state.
The revenue requirement by WESCO are being drawn based on their inefficient
operations compelling the consumers to accept the high tariff. WESCO should have come
out with a proposal of Tariff reduction based on efficiency improvement which was the
ultimate aim/intention behind privatisation.
WESCO should submit the detail proposal to reduce losses and to improve cost
efficiency.
The BST tariff for WESCO is much higher than the other three distribution companies.
Fixation of BST for WESCO at higher tariff is to subsidise the inefficient distribution
companies.
The utility is spending huge amount to fight litigation against the commission but has not
spent even one paisa by filing any case in any court. In the circumstances no bad debt
should be allowed and legal expenses incurred by the utility should not be allowed.
To direct the Govt. Of Orissa to bear the financial burden of subsidy to a particular
category of consumer if required and not to a particular category of consumer if required
and not to pass on the burden on industrial consumer.
To permit the consumers to purchase electricity from party within or outside state paying
wheeling charges to encourage competition.
22) M/s. Lingaraj Feeds Ltd., Kacheri Road, Rourkela 769 012 Dist-Sundargarh.
Objector is a limited company having Cattle Feed Unit located at Kalunga Industrial area.
The objector is having similar units in Chhatisgarh, Jharkhand and West Bengal where
the tariff are comparatively lower than the tariff in Orissa.
There is no competition among the distribution companies which was one of the
important aspect of electricity reforms. The present application by the licensee to bundle
all the DISOMS to pay over drawl penalty for all the DISCOMS shows monopoly of the
reliance operated licensees in power sector. The Hon’ble Commission may kindly
pleased to not to allow any enhancement in tariff in any manner unless the utility is able
to reduce the losses.
Hon’ble Commission had excluded the cattle feed and poultry feed from agro-industrial
consumer category. Seeing the importance of these industries and the interest of the entire
agriculture sector Hon’ble Commission may treat these industries as that of irrigation.
Load factor incentive may further be modified to encourage and reward the consumers
for achieving higher LF. Further availability of power is most important in arriving at LF
hence the same must be counted in calculation of LF. Further, pf incentive should be give
for improving pf above 0.9.
Security deposit may be allowed in the form of BG and the prepaid meters should be
made available to the consumers.
Validity of power agreement should be reduced to 1 year.
23) Shri R.P.Mahapatra, Retd Chief Engineer, & Member (Gen.) OSEB, Plot No. 775 (Pt)
Lane-3, Jayadev Vihar, Bhubaneswar 751 013.
The objector has submitted that the licensee has failed in reduction of distribution losses,
collection of venue, adhering to the SOP norms, liquidating the arrears due and failed on
many fronts. Further licensee is operating in this area for almost 13 years and it is too
much to except improvements in its performance. Allowing the licensee to continue such
operation will further deteriorate and cause serious harm to the power sector in Orissa.
The licensee has failed to control the distribution losses after 13 years after privatization
of the distribution sector. Further, the losses have been increasing and hence, the gap
between the actual loss and that approved by the commission has been widening from
year to year.
The licensee claims to have been completed the feeder metering by Oct 2003 and
distribution transformer metering by 31 March 2004, however it has not submitted the
actual energy audit data for last seven years.
It has been observed that the licensee has reduced the energy meters installed on 11 kV
feeder and on distribution transformers for energy audit purpose, suggesting that the audit
meters are being used for consumer meters. Further, only 71% meters of the total
consumer are in working condition and the licensee has failed to provide the electricity
with correct energy metering.
The license is making the same stereo type submissions like harsh ground realities, lack
of Govt. support and non-relaxation of escrow etc., to justify its non-performance year
after year, thus indicating a lack of seriousness in its approach to reduce Distribution
Losses.
The licensee should indicate the collections made in the past years and projected for FY
2011-12 and FY 2012-13 for the current demand for the year and the arrears.
The licensee should indicate the arrears collected from the consumers out of the amount
written off by the State Govt. prior to 01.04.1999 without deleting the amounts from the
consumer ledgers. Licensee may submit the arrear amount as on 01.04.2011 and the
amount collected upto 30.09.2011 and further submit whether the balance amount of
arrears are collectable or are being written off. Licensee may submit the audited data of
arrears receivable.
Hon’ble Commission may stipulate the level of collection to be made from the current
dues as well from arrear dues and the licensee shall exhibit the collection data
accordingly.
In case No 35 of 2005 relating to revocation of license (Section -19) & suspension of
Distribution License and Sale of Utility (Section 24) has been completed and the Hon’ble
Commission has reserved orders.
However, seeing the deterioration of performance of the licensee, the only way to rescue
the Orissa Power Sector is to immediately revoke the distribution license of WESCO.
The RST orders of the Hon’ble Commission for the FY 2010-11 and FY 2011-12 are
required to be re-determined based on the orders of the Hon’ble ATE, New Delhi in its
order dated 30.05.2011 and 02.09.2011. The Hon’ble commission may determine the
cross subsidy based on the principle that the such cross subsidies shall not be increased
but reduced. Even though Hon’ble Commission has amended the OERC (Terms and
Conditions for Determination of Tariff)Regulations, 2004 which was published in the
Odisha Gazette on 10.08.2011 the same may not be taken in to consideration for
determination of RST for FY 2012-13 as it is not in accordance with the provisions in the
EA, 2003
Suggested Tariff rationalization Measures:
o The concept of minimum charges has not been accepted in tariff setting. The
licensee proposes to recover the amount due based on the suggested LF of these
consumers whether the consumers consume the electricity or not. This is illegal
and goes against the natural justice and nobody can be forced to pay for energy
not consumed.
o The submission of licensee for increase in re-connection charges is that the
licensee has to spend Rs 50,000/- per month for disconnection on police and
security agencies. However. said expenses should form the part of A&G
expenses.
o Consumers get 15 days time after receipt of energy bill for its payment. Licensee
has not submitted any data of amount remaining unpaid. The rebate allowed to the
other category of consumer is more that 3% which is more lucrative than DPS.
Hence, the provision of DPS will not enable the licensee to receive the payments
within 48 hours and therefore, this provision should not be included.
o kVAh billing will increase revenue of utility without any effort. However,
consumers will continue to operate at low power factor. The power factor penalty
is acting as a deterrent for operation at low power factor and consumers can take
corrective action.
o The load factor incentive is allowed based on the provisions in the Section 62(3)
of the Electricity Act, 2003. Hence, discontinuation of Load Factor Incentive is
not Justified.
o There is no justification for collecting Security Deposit for the full value of the
meter when the full meter rent is being charged. Further, the licensee is fully
protected as Regulations make the consumer responsible for safety of meters.
o The proposal of licensee to provide flat rate tariff to Lift Irrigation points is a
retrograde step and violates the statutory provisions. It will also unnecessarily
burden the L.I. consumers who do not run their pumps for 12 hrs a day and during
the entire period from October o April next year. Hence this may not be accepted.
Licensee should disconnect the power supply of Govt. consumers on account of non-
payment of dues by giving proper notice. Govt. Consumers cannot be allowed to
consume electricity without making timely payment.
Hon’ble commission in the RST order for FY 2010-11 have determined the ‘Off-Peak”
period as from 00.00 hrs to 6.00 hrs. Hon’ble Commission may direct the SLDC to
submit the load and frequency profile during the day to determine the “Off-peak” period
and submitted to consider the off-peak hours as 20.00 hrs to 6.00 hrs.
License has overstated the expenditures in many points and hence Hon’ble Commission
may kindly determine the actual cost to be allowed.
The licensee has proposed collection inefficiency as bad & doubtful debt. The licensee is
not debarred from collecting the arrears in the subsequent periods. The amount not
collected during the FY from the current revenue is not written off from the books of the
licensee. Hon’ble Commission has also rejected such submission in RST for FY 2010-11.
Hence, truing up of for bad & doubtful debts should also be made every year to take in to
account only such dues which are not collectable and have been written off from books of
licensee and amount of 1.5% may be allowed towards bad debt. .
Power factor incentives should be computed beyond the PF of 95% and penalty should be
calculated below 90%.
Bulk supply purchase price of licensee should have two part tariff structure.
Separate Licensee for supply of power to EHT consumers.
24) Shri Pradip Kuma Pradhan, S/o. Purna Chandra Pradhan, Viom Networks Ltd.,
Odisha, Fortune Tower, 4th Floor, Module-C, Chandrasekhar Pur, Bhubaneswar 23.
Objector is a mobile telecom infrastructure service provider in the Orissa Telecom Circle
and has obtained many LT power connections from DISCOM. In many cases the objector
has constructed the 11 kV line, distribution transformer, LT line and service line which
has helped the DISCOM to reduce its O&M cost, reduced interest on CAPEX and got the
free assets.
Inspite of incurring huge cost towards distribution network in rural area the power supply
is irregular.
Irregularity in power supply adds the cost towards stand by supply from DG sets, and
also affects the timely powering up of Base Transceiver Stations (BTS) This is further
affecting roll out of services to customers. As this falls under essential utility service
continuous supply is required and TRAI has also recommended that Dept of Telecom
should address all State Governments to direct the DISCOMS to provide grid power on
priority.
Use of DG set adds the cost of O&M and makes the telecom service costly and unviable.
Further, objector is being treated as commercial consumer whereas, the objector is an
infrastructure service provider and TRAI has recommended to consider telecom as
essential infrastructure services and requested for un-interrupted power supply.
Considering telecom as essential service provider the objector has requested to consider
separate consumer category while deriving tariff for ensuring year and not to be treated as
commercial category.
Objector pointed out the NTP provision to bring down the cross subsidy to +- 20% of
average cost of supply by the end of March 2011.
The objector prayed to consider separate category of essential services for the objector
and requested tariff lower that non domestic and industrial category tariff.
